Enforceability of Physician Non-Compete Agreements
Ohio has long recognized the enforceability of non-compete agreements. Broadly speaking, a court can do one of three things with an unenforceable non-compete agreement: (1) the court can apply the “red pencil” doctrine and...more
Most employers know that California has for decades prevented enforcement of employee non-competition and customer non-solicitation agreements. Some companies with California operations modify their agreements with employees...more
Employers take note: a series of recent developments could impact employment agreements across the country. SB 699: A New Addition to California Non-Compete Law- Under California Business and Professions Code Section...more
For decades, California has taken arguably the most pro-employee-mobility position on noncompetition and non-solicitation agreements in the country – generally, post-employment noncompetition and non-solicitation agreements...more
The Federal Trade Commission (FTC) proposed a rule on Jan. 5, 2023, prohibiting non-competition clauses ("non-competes") in employment agreements. For purposes of the rule, non-compete provisions include explicit and de facto...more
Earlier this year, in Steuer v. Tomaras, et al., Georgia’s Statewide Business Court again refused to modify certain restrictive covenants that were missing a territory. Dr. Steuer, a former partner of the defendant doctors,...more
A recent opinion from the United States Court of Appeals for the Fifth Circuit applying Louisiana’s restrictive law governing noncompetition agreements, reminds employers of the importance of establishing an employee-employer...more
In M & P Drug Mart Inc. v. Norton, 2022 ONCA 398, the Court of Appeal for Ontario (OCA) dismissed an employer’s appeal of an application judge’s decision that a non-competition clause in an employment agreement governed by...more
Advanced Medical Rehab, L.L.C. (AMR), is a marketing company that represents several medical clinics in Louisiana and markets the medical services of those clinics to personal injury law firms. When AMR learned that Shelby...more
Since the passage of the Georgia Restrictive Covenants Act (O.C.G.A. § 13-8-50 et seq.) in May 2011, there has been some level of uncertainty regarding the extent to which a court may “blue pencil” or modify an otherwise...more
Recently, the Illinois General Assembly passed legislation significantly amending the Illinois Freedom to Work Act, which governs the legality and enforceability of non-compete agreements and other post-employment restrictive...more
In a recent decision and case of first impression, Pennsylvania’s Supreme Court unanimously affirmed that a no-hire of employees provision between a business and its vendor was unenforceable because it constituted an...more
In a decision resolving a dispute that has been pending for nearly five years, the Supreme Court of Pennsylvania just voided a no-hire provision entered into by two companies that bound one of them from hiring former...more
On December 31, 2020, the Nevada Supreme Court issued an opinion addressing and clarifying several issues relating to the power of the court to reform or modify an unreasonable noncompetition agreement often referred to as...more
The Nevada Supreme Court held that courts may change or “blue-pencil” an unreasonably restrictive non-compete agreement to make it enforceable if the agreement contains a provision allowing the modification of unenforceable...more
Since the onset of COVID-19 and the related business shut-downs, employers across the country have been forced to make the difficult decision to lay off or terminate many of their employees. Of the tens of millions who have...more
With the new year fast approaching, employers with Washington-based workers should ensure—if they have not already—that they are prepared to comply with legal changes substantially limiting the enforcement of non-compete...more
Quick Hit: Effective October 1, 2019, Maryland law prohibits the use of non-competition agreements for employees with wages equal to or less than $15 per hour or $31,200 annually....more
In recent years, North Carolina courts have become increasingly resistant to enforcing noncompetition and non-solicitation restrictions they view as insufficiently narrowed to the specific competitive threat presented by the...more
As 2020 approaches, employers in New England may want to review their noncompetition agreements to determine whether they comply with recently enacted laws in Rhode Island and New Hampshire. In 2019, both states passed laws...more
Effectively drafted restrictive covenants are valuable tools employers can utilize to protect their proprietary interests. Covenants not to compete and covenants not to solicit an employer’s clients or employees are the most...more
California Employee mobility and the right to compete are sacrosanct in California, and have been since its Legislature enacted section 16600 of the California Business and Professions Code, which voids “every contract by...more
When we talk with clients about post-employment “noncompete” agreements, this term actually encompasses a number of different restrictions. In addition to provisions that restrict the employee from working for a competitor...more
Earlier this year, Washington adopted a new law—Engrossed Substitute House Bill 1450—that places significant restrictions on the enforceability of non-competition agreements. The law applies to “every written or oral...more
To much fanfare and the great excitement of many employment lawyers, the UK Supreme Court recently delivered its first judgment on employment post-termination restrictions for a century, in Tillman v. Egon Zehnder. The court...more